Rhee Says Economy Forces D.C. to Cut Wage Proposal

Bill Turque:

D.C. Schools Chancellor Michelle A. Rhee said yesterday that the deteriorating economy will force the District to cut the wage proposal in its contract offer to the Washington Teachers’ Union. At the same time, Rhee spoke in upbeat and conciliatory terms about negotiations with the union, now in their 15th month.
The financial package Rhee offered in July called for a minimum increase of 28 percent over five years, depending on which salary “tier” teachers selected. But with the District expected to collect at least $456 million less in tax revenue during the 2010 fiscal year, she said the situation has changed. Rhee said she would soon submit a revised final offer.
“Obviously, we’re in a much different situation financially,” Rhee said at a mid-morning news conference, called to highlight improved rates of graduation, attendance and service to special education students.
The chancellor said the financial downturn has not weakened what she has described as commitments from private foundations to fund an unprecedented five-year program of “reform stipends” and performance bonuses for teachers. An information packet given to the union this summer said senior teachers could make as much as $135,000 annually in salary and bonuses. Rhee has declined to name the organizations but has mentioned four to private audiences: Gates, Broad, Dell and Robertson.